KSE-100
KARACHI: The Pakistan Stock Exchange (PSX) reached new heights on Friday, surpassing the 77,000 mark with a significant intraday gain of over 1,000 points.
The benchmark KSE-100 index soared to an unprecedented peak of 77,213.31, marking a 1.32% increase from the previous day’s close at 76,208.16 points.
According to Saad Ali, Director of Research at Intermarket Securities, the market rebounded sharply following the announcement of the budget for fiscal year 2024-25.
The absence of an anticipated hike in Capital Gains Tax (CGT) and renewed hopes for resuming talks with the International Monetary Fund (IMF) for a new program were cited as key factors driving the positive market sentiment.
Just a day earlier, the stock market had already set a record high at 76,208.16 points, surging by an unprecedented 4.69% or 3,410.73 points.
Adnan Sheikh, Assistant Vice President of Pak Kuwait Investment Co, noted that investor confidence had previously waned due to expectations of increased capital gains taxes, prompting many to reduce their exposure.
The budget for 2024-25 aims for a modest 3.6% economic growth, reflecting a delicate balance to meet IMF requirements while addressing Pakistan’s fiscal challenges through heightened taxation measures.
The budget’s strategic alignment is intended to strengthen Pakistan’s case for a new bailout agreement with the IMF, as the country seeks financial assistance estimated between $6 billion to $8 billion to prevent economic default in a region grappling with sluggish growth rates.
In conclusion, the surge in the PSX underscores investor optimism fueled by fiscal policies that avoided anticipated tax hikes and revived prospects for international financial support, signaling a potential turnaround in Pakistan’s economic trajectory amidst challenging global and domestic conditions.
